A Major Online MBA Is Lowering Tuition. Here’s What It Means for Working Students Seeking High-ROI Degrees
Credit: Watchara Piriyaputtanapun/ Moment / Getty Images- Purdue University’s Mitch. Daniels School of Business is cutting its tuition by almost half, down to $728 from $1,250 per credit hour.
- That move comes as online MBA students demand affordability and flexibility in online programs.
- A number of schools have launched disruptively priced online MBA programs in recent years.
Tuition for a big business school program is being cut by almost half as working professionals look to advance their career with an online degree — and seek a good return on investment (ROI), too.
Purdue University’s Mitch Daniels School of Business announced that it is lowering tuition to $728 per credit hour, down from $1,250, for its online master of business administration (MBA) program. That puts the total cost of the 48-credit-hour program at $34,944, down from $60,000.
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School officials said in a press release that the price cuts reflect the program’s commitment to accessibility.
“By aligning our tuition structure with this mission, we are opening the door for more professionals across Indiana and beyond to benefit from a premier, high-impact MBA experience,” Dilip Chhajed, associate dean for master’s and online programs, said in the release.
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“This new pricing underscores our goal to deliver world-class business education while remaining an affordable institution that empowers individuals, strengthens communities, and drives economic growth.”
The move by Purdue reflects more than just its mission, however. It’s also a response to an increasingly competitive online MBA market of working students who prioritize affordability and flexibility as they search for career-advancing business degrees.
Enrollment in MBA programs is projected to grow through 2030 following a period of decline, but a proliferation of online offerings means schools need to do more to stand out.
A Validated Insights report found that MBA enrollment is projected to increase at a compound annual growth rate of 3.2% through 2030 after declines dating back to 2008.
Brady Colby, head of market research for Validated Insights, told BestColleges in a previous interview that the strong ROI of the degree is helping to drive demand.
“We’re kind of early on in the demand curve of things where we start to see employers demand some more of these, and then prospective students start to understand there’s real career prospects with this,” Colby said.
The online MBA market, however, is becoming oversaturated. Colby described the market as “hyper-competitive” as the growing number of online offerings has meant decreasing enrollment in individual programs despite overall growth.
That means having an online degree in and of itself isn’t enough to attract students, and schools appear to be recognizing that. The Validated Insights report noted that 61% of business school deans think competitively priced MBAs from strong brands will lead the online MBA market.
On cue, institutions have launched disruptively priced online MBA programs.
The University of Illinois iMBA, for instance, has a total price tage of $24,984. The Quantic School of Business and Technology offers self-paced, mobile-first online MBA programs for $14,250.
Cost isn’t the only factor for online MBA students: More recent research from CarringtonCrisp also found that older learners tend to prioritize flexibility alongside value when searching for a degree.
Purdue’s affordability push also combines flexibility with a high-demand curriculum and career coaches providing one-on-one guidance.
“Students are always searching for quality and value, and our online MBA provides both academic excellence and superior return on investment,” Chhajed said.